As my colleague Alec Lucas discussed recently, small-cap stocks have been also-rans to their large-cap brethren lately. The Morningstar US Large Cap Index has trounced the Morningstar US Small Cap Index during the past year, with the former up more than 6% while the latter is 5% in the red.
Given this wide gap in performance, Lucas suggests that buying small caps now may reward long-term investors--and these smaller fries may be especially attractive to those who believe that the small-cap premium will win out again over time.
This article is exclusive to Morningstar Premium members.
Susan Dziubinski does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.